EasyJet boosts its finances with deals
BRITISH AIRLINE easyJet has raised £ 306m from the sale and leaseback of nine aircraft to boost its pandemic- hit finances.
EasyJet said it would continue to review its liquidity position and could seek more sale and leaseback deals, calling this market “robust”.
Before these deals, it had already raised £ 608m from sale and leasebacks during the crisis.
With travel at very low levels, most European airlines are bleeding cash.
To survive the pandemic so far, easyJet has, in addition to the sale and leaseback deals, taken a £ 600m loan from the Government, cut 4,500 jobs and tapped shareholders for £ 419m.
Media reports earlier this month said that easyJet had signalled to the Government that it may need more financial support.
It seems there could be further opportunities in the sale and leaseback market where the airline said it has seen high levels of demand.
Following the completion of the new deals, easyJet said it would retain 152 fully owned aircraft, representing 44 per cent of its fleet.
EasyJet said that it signed two deals.
One was with Wilmington Trust SP Services for five Airbus 320 aircraft for cash sales proceeds of £ 147m.
The other deal was with Sky High 112 Leasing Company for four A320s for cash sales proceeds of £ 159m.
Analyst Gerald Khoo at Liberum said: “EasyJet’s ability to tap the sale and leaseback market to raise liquidity is positive, especially in light of the toughening outlook for the winter.”